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For each of the examples below, answer the following questions:
(a) Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality.
(b) If there is an externality, does it seem likely that private markets will arise that allow this externality to be internalized?
1. Toxic waste production by firms
2. Research and development by a high-tech firm
3. Individual vaccination against communicable illness
Illustretae what is the relationship among quality, consumption and demand for health care services.
If you buy the stock and plan to hold it for 3 years, Elucidate what payments will you receive. What is the present value of those payments? Compare your answer to (b).
Does that mean that, by using the Phillips curve, is the unemployment rate zero when the rate of inflation is neither increasing nor decreasing?
Illustrate what kinds of changes in underlying conditions can cause the supply and demand curves to shift
Assume bread is subsidized in a small Caribbean nation with a high percentage of citizens who live in poverty. The subsidy is paid to suppliers of bread through government in amount of 50 pesos per loaf.
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
Illustrate what is the amount of the producer surplus for Juan Carlos combined.
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
even though they could have sold the units for substantially higher prices. Explain why do you think that the merchants adopted this policy.
The table given below gives the production and values for a small economy that produces only bread and pop. The base year is 2002.
For this hypothetical economy, what were the three major issues of concern in 2009 AND What is the relationship between these three variables, that is, how does one affect the other?
managerial economics to analyze the reasons for and against the merger, also to assess the performance of the consolidated company since its completion.
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